According to a press release, the self-aligning function will be included as part of Invest n Retire’s trading system, Asset Manager. When payroll contributions are received by the custodian‚ Asset Manager invests each employee’s contributions according to the employee’s asset allocation model, but first determines whether they are over- or under-weighted.
After the analysis‚ Asset Manager purchases more shares for any investment option that is under-weighted and fewer shares for any investment option that may be over-weighted.
According to the press release, the advantages of investing employee contributions in this manner are that each portfolio maintains its target allocation which means that less trading is required at the end of each calendar quarter for rebalancing; and the method maximizes dollar-cost-averaging.
For more information, contact Darwin Abrahamson at 503-419-2894 ext 102 or at www.investnretire.com.